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109 Contiki Employees Protest Dismissal

Contiki Hotel Owner Resisting Severance Payment to Employees During Management Company Change-Over.


Bali News:
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(11/24/2008)

Radar Bali reports that 109 employees of the Contiki Resort Bali are facing an uncertain future following their termination. As reported on balidiscovery.com in August of 2007, [Contiki Resort in Bali to Close] the youth market positioning and Contiki branding , of the 133-room Resort are set to end. Reports from the owners indicate the 18-35 year-old only configuration of the property never managed to capture its anticipated market share in Bali.

In the process of being re-launched as The Breezes Resort and Spa under its new managers PT Mount Batten Indonesia, 109 former employees of Contiki have had their employment terminated.

Under Indonesian law, employment termination in must be a negotiated process between the worker, the employer and the government Manpower office. According to Radar Bali, the terminated employees are refusing to accept dismissal and appealing for arbitration mediated by the Bali Manpower office. Discussions between the Resorts owners and the terminated employees on November 10, 2008, ended in an impasse. The discussions, held at the Denpasar Manpower office, between the 3 representatives of the hotel's management and 10 members of the workers' union were held behind closed doors while hundred of workers and sympathizers waited outside the building.

The 109 employees are asking the government to compel the Hotel's owners to continue their employment or, at the very least, pay full termination benefits as stipulated under Indonesian labor law.

The owner of the property, Made Wiranata, is reportedly arguing that he is "only" the owner of the building and the land, and that the management of the resort was contracted to a third party. The Balinese owner is presumably contending that the rights and responsibilities of the hotel's staff are the responsibility of the outgoing managers.

Union representatives are not accepting the owners arguments, claiming the operational licenses or the property are held by the owner and that many members of the senior management, in fact, remain unchanged under the re-branding from Contiki to The Breeze Resort & Spa.

Three-party discussions between the terminated workers, the owners and the Manpower office continue.


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